Your Weekend Learning Journey into Technical Analysis

This past weekend was all about diving into the foundational knowledge of technical analysis. 🌟 I had planned to finish Ross’s chart pattern study guide, but a packed Saturday of overtime left me with no time to spare. 😢 Thankfully, the comments section was filled with amazing suggestions from fellow traders! So, on Sunday, I dedicated the entire day to exploring the YouTube channel of a gem of a content creator: The Trading Channel. 🎥

Diving into Forex with Steven

Steven, the host, primarily focuses on forex trading, emphasizing price action and swing trading—both of which are areas I am eager to learn more about. His content covers essential topics such as:

• Price Action
• Market Structure
• Support and Resistance

Building a Trading System from Scratch

One of the standout aspects of Steven’s approach is his guidance on building a trading system from the ground up. Trading mainly revolves around two concepts: trend continuation and trend reversal. Therefore, the primary task is to identify the current trend:

1. If the trend is unclear, it’s best to refrain from trading and wait for clarity.
2. Determine trends by identifying Major Swing Highs (MSH) and Major Swing Lows (MSL).

To define an MSH, it should be followed by at least three red candles (they don’t need to be consecutive), while an MSL should have at least three green candles following it. 📈📉

Establishing Trading Opportunities

Once the trend is established, traders can decide whether to look for trend continuation or reversal opportunities. The following tools can be used to analyze trends:

• Use the 4-hour candlestick chart to identify trends and pinpoint the Optimal Trading Zone, where the price has tested specific levels multiple times.
• Utilize the 15-minute candlestick chart to find entry points, looking for Close Above Candle and Close Below Candle signals.

Examples of Different Trading Scenarios

Steven provided valuable examples of how to visualize trend continuations and reversals:

• Uptrend Continuation Example: See Illustration 5️⃣6️⃣
• Downtrend Continuation Example: See Illustration 7️⃣
• Trend Reversal Example: See Illustration 8️⃣

Day Trading Strategies

If you are into day trading, Steven also shares indicators to better determine entry and stop loss positions, including:

• 50 EMA
• Relative Strength Index (RSI)
• Average True Range (ATR)

Overall, it was an incredibly rewarding weekend filled with insights and fresh learning materials! 📊💡 #USStockMarket #StockTradingNotes #USMarketLearning #WeekendLearning